Published on 2/5/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $10 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – Morgan Stanley Finance LLC priced $10 million of trigger callable contingent yield notes with daily coupon observation due Jan. 28, 2027 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at the rate of 10% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on every index business day during the relevant quarterly observation period.
The notes will be callable at par of $10 plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is acting as dealer
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $10 million
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| Maturity: | Jan. 28, 2027
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| Coupon: | 10% per year, payable quarterly if each index closes at or above its coupon barrier level on every index business day during the observation period
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| Price: | Par of $10
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| Payout at maturity: | Par unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
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| Call: | At par plus any coupon due on any quarterly call valuation date
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| Initial levels: | 4,868.55 for S&P, 1,961.865 for Russell, 4,564.11 for Stoxx
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| Coupon barriers: | 3,407.99 for S&P, 1,373.306 for Russell, 3,194.88 for Stoxx; 70% of initial levels
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| Downside thresholds: | 2,921.13 for S&P, 1,177.119 for Russell, 2,738.47 for Stoxx; 60% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1%
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| Cusip: | 61775K837
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